Oil and Gas Lawsuits EXPOSED: What Companies Need to Know Lauren Varnado NAPE 2026

There's so much to do in only gas litigation. I bring on Lauren Varnado on this episode of The Courtyard. In 1901, at Spindletop Hill, near Beaumont, the future of Texas changed dramatically, as like a fountain of fortune, thousands of barrels of oil burst from the earth towards the sky. Soon Detroit would be cranking out model teas by the millions, and America was on the move thanks to the black gold being produced in Texas. Now, more than a century later, the vehicles are different, but nothing else has truly changed. Sure, there may be many other alternative energy sources like wind and solar and electric. But let's be honest, America depends on oil and entrepreneurs, and if the USA is truly going to be independent, it has to know the crude truth. This episode is brought to you by LFS Chemistry. We are committed to being good stewards of the environment. We are providing the tools so you can be too. NAPEXPO, where deals happen. Air compressor solutions. When everything is on the line, air compressor solutions is the dependable choice to keep commercial business powered up. Sandstone Group, exec crew, elevate your network, elevate your knowledge. Texas Star Alliance, Pecos Country Operating, Fueling Our Future. Well, here we are at NAPE in Lourdes, Bernardo. Did I say that right? Barnandale? Barnardo? It's a little more Louisiana on it, but that's okay, Ray. Okay, Barnardo. Well, Lourdes, so great to connect. It's so great to meet you. How are you? Thank you. I'm doing great. I love NAPE. I think it's so fun and exciting. I have it like being a long-term Houston resident brings everybody to the city, including yourself. Yes, that's right. Yes. This is my third, I've definitely long-time, long-time, though. How do they say it on the radio? Like, long-time listening, first-time call. Yeah, yeah. This is our third year to be here, and we're just loving, especially the crew, truth. But, Lauren, you have been blazing a trail in Olin Gas now for years. Your first chair, which I remember like in sixth grade band, that was kind of a big deal for your first chair. So I'm assuming that's a big deal. You're in the Olin Gas space and you're in Houston, Texas. Can you get any better? No. Yeah, no, I can't. Tell me about you and what does first-chair mean and what kind of law you pranked? Right. So I consider myself first an Olin Gas lawyer in that I grew up doing only Olin Gas. I had us a comment to Shell Oil Company when I was an associate. So it was a lawyers, right? We started as associates. You're a little baby lawyers growing to being a partner. I'm a partner now. But when I was a pretty baby associate, I was exposed primarily to upstream Olin Gas, but really the operational side of Olin Gas, which made me a better lawyer and a much better litigator. So, at your point, I do trials. So, Olin Gas trials is primarily what I do. So, the first chair, technically, had to be with something in the room? In the courtroom? Yes, it does. I know the room. Yeah. I just kind of thought about that. So, you are a Johnny Cochran then. Yeah, I wish. I love -- yeah, he's -- I mean, definitely. In the lawyer's world, he's -- I mean, Joe Jamail. Yeah, there you go. Probably like my idol, but we'll put that aside. Yeah, yeah, yeah. Yeah, but yeah. Get him out of jail. You're doing a good job. That's right. Love doesn't fit. But yeah. Yeah, is that really what that means? And that you kind of like the lead person? Typically, you know, but of course, like I depend so much on my team. And you can't do a trial by yourself. So, first share, certainly, it's not all about me. And certainly not at trial. I usually honestly give young lawyers as much opportunities as I can in the courtroom because that was super important for me and my development. And so, I try to get as many people in there as possible. What's a jury here from as many people as possible? Well, okay. Well, speaking of here, it's been as few people as possible. I've been doing the career truth out for three or four years. And I know I have been trying to get you on for at least two. Because oil and gas law is so important. Again, you said you're a trial lawyer in the oil and gas industry. I don't know how many things go to a trial and oil and gas, whether it's an operator doing something wrong against a producer, whether it's an investor or an operator or an oil and gas investor that did an investor wrong. So many things happen. And I know where we finally talked the other day. There's even a few things that you were like, oh my gosh, this is what we need to talk about. Let's go. Right. So one thing I think that, especially in the energy industry, because every industry is different with litigation and the law, and just, you know, as an industry, what do you recognize is important. But I think oil and gas companies in the past have been, you know, for good reason, hesitant to file lawsuits. And I'm talking about, you know, you're more like your larger independent producers or even your larger midstream companies, the majors, you know, those kind of folks. And of course, they don't want to ruffle feathers or make their shareholders or interest holders mad. But there's been more and more calls that at least I'm getting, where companies are having to make tough decisions about getting aggressive and litigation actually taking more of an offensive approach, meaning like being the plaintiff and filing the case. So one thing I want, oil and gas companies to know probably more than anything, is about litigation funding. Because there's certain things that will just be really honest. It is the crude truth. Right. It's the crude truth. But oil and gas is, I think we would all say, and the legal industry is the worst. But tends to be maybe a little behind on certain things. Sometimes it's technology, the employment of technology. That's definitely true in the legal industry. Like do we say, the deployment of technology? You have to factor, we don't embrace it. It's the deployment. That's exactly. Yes, I like that. And it's, like I said, legal industry is the absolute worst. But one thing I think that other industries caught on to, certainly in tech, was the same called litigation funding. And so what that means is, so you say you are a company and somebody's doing you wrong, really hurting you, millions of dollars. You feel the pressure to do something, but you're worried what if we don't win? And I understand that as a general counsel of a company, you have to answer not only to your board, but to your shareholders, your interest owners, I'd explain if you spent, say, millions of dollars to go sue someone and then you lose, like how are you going to explain that? And that's always been the sphere and I think it's held people back. But you know, and it's kind of new and built out from, honestly, the tech industry. But there is a whole industry of litigation funding, meaning there's private equity back, typically, but these companies that have sprouted up and all they do is pay for litigation. So what I would say to companies is if you have somebody you need to go after, but you're worried what if we lose and I have to explain to my shareholders why I paid this lawyer. And we didn't win. I got you covered because I can get a litigation funder to pay for the litigation. And so essentially, to me, it's a win-win situation for the company in that you're not going to be out any money if we lose. And if we win, it's how many millions to your shareholders or your interest donors, right? Can people really be mad if you're not paying for it? So that's my pitch on that. But I do have a couple of litigation funding cases right now. And my firm handles a lot of those in tech. And so I think it's really important for oil and gas companies to understand that if someone is really wronged you, there are other folks, you know, typically these litigation funders or lawyers like me, who used to do what I do, and then they're like, they know how to spot a good case. If you have a good case, they will pay for it. Are these almost like investment companies? Like, well, no, a private equity is investment, basically. They're investing. Well, are you telling me they're investing in the fact that if you win, they get a piece of that pie? Yes. Along with the company, but then if you-- Along with the company. The only people that lose money in the situation would be me, the lawyer, law firm, and the funder. Wow. Not the client. Whoa. It's really important just because I've seen it. It's really, I think, transformed IP and patent litigation completely. I mean, you see these large, you know, patent cases against Apple, whatever. You know, kind of the David versus Goliath before it was impossible if you were too small. Like, say you're a really small producer. Yeah. But you're a really small producer. You're a little guy and say one of the big guys is, you know, trying to steal your stuff or, you know, not paying you accurately, right? Like, there are resources. It's not all on, like, so know that and reach out and find out because there are people who will not just are a lawyer because I believe in the cases that I take. But the litigation funders believe in the case too and are willing to put their money where their mouth is. And then you can tell your board, they don't have to worry about being bought them up. Yeah. So it's kind of genius, but-- Genius is beyond-- I mean, I love the way that we can invest in anything nowadays, basically, or gamble. I mean, it's another former gamble. I mean, it's not a second of this. Bitcoin, I don't know. We're just all sorts of things. Our death thing was down based on time we're recording today. Like, we went from 120 to 16. Oh, no. 50%. I know. And they say ours is volatile. Arring for it. I don't know. Too shay. I love that. Oh my gosh. Carl, though we've been hanging. Okay. I am a small, low producer. I like what I-- what I-- what I talk to you on the front, I said, that's my bread and butter. I love doing the crude truth. But being a small producer does have its-- like, ah, and you get nervous, like, what are we going to do? What are some of the other types of lawsuits that you're seeing that can maybe be-- and you get lower client privilege. Okay. I understand that 100% tell me, you know, just say don't, you know, whatever. So I understand that. But what are some other big oil and gas food pauses? I think would be a word that you're seeing right now that that are either coming up in litigation a lot or that can be prevented. >> Mitigating risk is tricky. But I will say the things that I'm seeing pop up. Or we've seen, I know with the change of administration, somewhat of a shift maybe in regulatory laws, right, of different federal agencies, battles over federal power. So right now it's really important about the speed of permitting, right? Right now it takes too long. >> Yeah, I just had on today one of the other interviews I did was with a car ingam of the Texas Alliance of the Management Agency. And he said that even though the EPA is doing great, we're still not getting a lot like still things don't need to be done. >> And of course subject to turning client privilege, I'm advising a client right now. We're working in regards to a refinery. And actually got the EPA in for like a first inspection, which is a big deal. And actually kind of an accomplishment that they've been trying to get done for a few years. So we've seen a change in just the past year. In terms of more federal response, I still think permitting is taking way too long. And I'm not sure how there's certain legal battles being fought over that. But I think that's a big hurdle for a lot of my clients, whether it's pressure from getting syphenos from the SEC, those sort of in the EPA, the Clean Air Act regulations are pretty strenuous. And the good news at least for a lot of my clients is the SEC withdrew that disclosure role because that was going to be insane. >> Lord, how long has been practicing law? >> 15 years? >> Wow. >> What a lifetime. >> It seems like it. >> I feel like you've crammed two lifetimes into this. As far as oil and gas. >> I have crazy things happen to me. >> Oh, leave. >> And in my cases. >> Any of those fun things so as you could share. >> Yeah, I mean, everybody knows my fan, like the crazy judge story, you know, the former judge. I've had some crazy ones. But definitely a story they went viral a few years ago. I made a judge really mad at a trial and he pointed a gun at me. And what was this? This was actually in a trial in West Virginia. >> How did you know that was Virginia? >> I know, but that's hey, that's like the biggest gas play in the United States. There's more gas in West Virginia than oil and Saudi Arabia. I promise you. >> Okay, you say so. I'm here to promote my guess. >> But it's true, it's true. I mean, more cellists is really an interesting place to practice law. There's like lots of I think unanswered questions. >> I would also say like I really am interested in like advising clients in cases like New Mexico. >> No, if I may, you do the tactic that I like to do, that is shift away. >> Why not shift away? >> I know, but it's so well documented in the media, but I will say. >> He shot, he pointed a gun. >> He pointed a gun. >> He pointed a gun. >> He was just, how can a judge point of gun? >> I know, I don't know, but he did. But I will say that after a long battle in the media, which is very well documented, because he said I was lying. >> So he put the gun out on me. And there were cameras in the courtroom. So it kind of maybe showed the truth. >> I would do this. >> So yeah, but after a long battle, it turned out of course that I was selling the truth. And the judge lost his wall license and can never be a judge again. But it wasn't the worst he was doing right. >> Oh, yes. >> Trust me, if he's going to treat fancy lawyers, you know what I mean from out of town like that? What is he doing to the everyday person? >> Well, yeah, I always said I thought that good old fashioned movie might cousin video. >> Yeah, exactly, exactly. >> But it's not just West Virginia, it's great. I like a lot. One thing a lot of people don't understand either is that corruption, that may be a strong word, but how much it happens where you may have jurors who shouldn't be sitting on a jury and they lie. Or a judge who may have a conflict and they don't disclose it. I mean, that happens a lot and I don't think people appreciate that. So it's a tricky world. >> Yeah. >> To maneuver. >> Lauren, we're learning every day that I think this is our podcast that is now getting so big because this corruption, there's corruption in this world. Some of it does need to come to a head. >> Yes. >> And that's why things again like the podcast are taking off because the media is not doing their job. So it's okay to say that word. That is a good word to say. For the small willing gas companies out there that see you and go, oh my god, this lady is a big use in lawyer. Why would she ever do a case with me? >> I do cases everywhere and I love doing cases everywhere. I don't even consider myself a Texas lawyer. Of course I have cases in Texas but everywhere because oil and gas is national. So my practice is national. And I love partnering. Like some of my best friends I've made. I'm one of my very best friends is co-counsel that we met being co-counsel on a case. And she's across the country. So I don't know, it's fun. And I love representing the underdog or really anybody and it doesn't need to be the underdog. But the underdog in the situation, if you've been wrong, I will fight and people who know me know that. >> Okay. And then your ideal client. What is your ideal client? >> I love, I mean upstream is my favorite kind of niche of oil and gas. I love royalties, nerdy things like that. Like J.O.A.'s joint development agreements, like really tricky contracts, things like areas of mutual interest. So like I'm really in the nerdy side of-- >> So geez, we're geek out. Yeah, we geek out. >> Yeah, yeah. >> But I love any, I love even cases, really any fraud case, whether it relates to climate or I've been involved in some winter storm cases, cases relating to curtailment, which you know is kind of an issue with grid congestion, etc. So really, I represent clients who need help and I believe their story, I believe in them and nobody will fight harder than me. So that's all. >> That's true. >> Well, for those out there that do what you get to hold, the name of your company is-- >> Brown Rudnick is my law firm. >> Brown Rudnick. >> I was Nick. >> Rudnick, but we're based in Boston, but national and we have offices across the country. >> Yeah, Lee, and how can people get hold of y'all to get some work done? >> I mean, honestly, I could throw my number, I will. But El Varnado at brownrednick.com is my email. But also message me on LinkedIn. >> Right, right. >> Yeah. >> Yeah. >> Because honestly texting me is the easiest way to get a hold of me, but definitely find me on LinkedIn or even Instagram. So it's just under lower in Varnado, you can find me, is it? >> Okay. You know, what are you excited about with the Sue Administration? Let's say the positives, some of the positives that come out illegal this year in 2026, four-year-old gas company. Like I said, I think it's maybe the weakening of certain regulations or standards that had been being pushed by the Administration on Federal Regulations, things like under the Clean Air Act, certain things that the EPA was doing, pushing, expediting, permitting, is so important. One thing that I think is interesting is that I think come to a head or kind of already as, but allocation of costs for like first source infrastructure, first energy infrastructure. So things like the data centers, that's like placing a great demand, you know, obviously, in terms of energy demand that they need. So I don't know, that's a whole field that is really uncharted territory in terms of the law and with AI. And so all those things I think are just really unknowns, which whenever there's something unknown, there's going to be litigation. So. >> Yeah. >> So it's better to have everything known. >> As much as you can. >> Okay, I gotta remember that. With the unknown is little great information, it's power, you know. >> Yes, oh my gosh. Well, Lord, I cannot thank you enough for your time. >> Yeah, thank you so much. >> What a positive thing you're doing, especially in the legal world and helping fight for those little guys and the underdogs and continue to have, I'm going to say this common sense in the courtroom. >> No, thank you. >> I do feel like common sense is coming back to the courtrooms. We have the BASPA overturned last week. And those are things that we have these organizations that are part of the government, but they're not part of the government. They are weaponizing oil and gas. So there is common sense and it sounds like with you and your team, you all are able to do a lot with just good old fashioned common sense. >> Right, and that includes, you know, not every, you said, I mean, how many cases even go to trial? Not many. I'm here to tell you that. I've had a lot, but I'm lucky. You could say, at least for a litigate. >> Yeah, yeah, yeah. >> But, no, very few. But to be honest, a lot of the time, my client's goals or objective is to, like, how can we settle this and get the best outcome for our shareholders, our interest owners? And, you know, a lot of that is just litigating to a point of leverage and finding the best business solution. And I do that all the time. So, you know, it's not always fighting in the courtroom. >> No, no. But it's always fighting somewhere. >> Right. >> Yes. Well, one again. For those out there that may have questions for Lauren, please reach out to me. We'll get you to the right person. Thank you to the Nate Bexpo, and we'll see you again on another episode of The Crew Truth. >> The Crew Truth would like to thank today's sponsors, LFS Chemistry, Nate Expo, Air Compressor Solutions, Sandstone Group, Exec Crew, Texas Star Alliance, Pecos Country Operating, and Real News Communication Network. The easiest way to start your own podcast and TV show, Real News Communications Network. Stand out from your competition. Produce streams. of high quality social media content. Become a thought leader in your industry. With RNCN, you get to be the host. We handle everything else. Tour one of our three locations in Dallas, Fort Worth, and the colony. Call 972-402-6333 or visit launcheshow.com to find out more.